Tunisia - Second Highway Project

Report No. 930-TUN d e0 y Appraisal of a FIL U Second Highway Project Tunisia December 4, 1975 Regional Projects Department Europe, Middle East and North Africa Regional Office Not for Public Use Document of the Worid Bank This document has a restricted distribution and may be used by recipients only In the performance of their officiai duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (As of April 16, 1975) Currency Unit = Dinar (D) Dl = US$ 205974 Dl,OO = US$ 2597.4 Dl,,OOO,OOO US$ 2,597,400 US$1 D 0.385 SYSTEM OF WOEIGHTS AND MEASURES: METRIC Metric System British/US System 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) 2 = 0.62 miles (mi) 2 1 sq kilometer (km ) = 0386 sq miles (mi ) 1 liter (1) = 0.2200 Imperial gallons (Igal) = 0.2642 U.S. Gallons (gal) 1 metric ton (m ton) 25205 pounds ACRONYMS AND ABBREVIATIONS ADT - Average Daily Traffic BCEOM - Bureau Central de'Etudes pour les Equipement d'Outre-Mer CST - Commission Sectorielle des Transports DPC - Direction des Ponts et Chaussees ER - Economic Return GDP - Gross Domestic Product GNP - Gross National Product GP - Route de grands parcours MC - Route de moyennes communications MPW - Ministry of Public WJorks MTC - Ministry of Transport and Communications OPNT - Office des Ports Nationaux Tunisiens RVE - Route vicinale d'etat SCET - Societe Centrale pour l'Equipementdu Territoire SEM - Service d'Entretrien de Materiel SETEC - Societe d'Etudes Techniques et Economiques SGEE - Societe Generale d'Etude et d'Engineering SNCFT - Societe Nationale des Chemins de Fer Tunisiens SOMATRA - Societe de Materiel et de Travaux SOTUETEC - Societe Tunisienne d'Etudes Techniques et Economiques STUDI - Societe Tunisienne d'Ingenierie UNDP - United Nations Development Programme REPUBLIC OF TUNISIA FISCAL YEAR January 1 - December 31  APPRAISAL OF A SECOND HIGHWAY PROJECT TUNISIA TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS ...... ...................... i I. INTRODUCTION ....................................... 1 II. THE TRANSPORT SECTOR ............................... 1 A. Effects of Geography and Economic Growth on Transport ................................ B. The Transport System .................. 2 C. Transport Policy, Planning, and Coordination .. 3 D. Previous Projects ............................. 5 III. THE HIGHWAY SECTOR ............................ 5 A. The Network .................. .. 5 B. Traffic . .5 C. Administration . .6 D. Planning and Engineering ................ 6 E. Financing ............................. 7 F. Construction ............................ 7 G. Maintenance ..8 H., Training ............................ 9 IV. THEPROJECT .......... .............................. 9 A. Objectives ................... . ....... 9 B. Description ..10 C. Engineering ..il D. Cost Estimate ..il E. Financing . .12 F. Implementation ..12 G. Disbursements .................. 13 H. Environmental Impact ................. 13 This report was prepared by Messrs. G. Ludwig (Engineer) and H. Beenhakker (Economist).  TABLE OF CONTENTS (Cont'd) Page No. V. ECONOMIC EVALUATION ................................ 13 A. Main Benefits and Beneficiaries .... ........... 13 B. Economic Evaluation ........................... 15 VI. RECOMMENDATIONS .................. .................. 16 TABLES 1. Rail Transport; Main Freight, 1961-74 2. Sea Transport, 1961-73 3. Air Transport, 1961-73 4. Actual and Planned Investments by Sector, 1962-1976 (millions of Dinars, current prices) 5. Actual and Planned Investments by Mode, 1962-76 (current prices) 6. Highway Network, 1975 7. Vehicle Fleet and Road Traffic, 1961-73 8. Road Traffic Estimates 9. Design Characteristics of Project Roads 10. Highway Expenditures, 1966-75 l1. Cost Estimates for Highway Improvement Works 12. Cost Estimates for Consultants' Services and Summary Cost Estimate 13. Physical, Financial and Economic Data of Highway Improvement Works 14. Results of Sensitivity Analyses of Cost and Benefit Streams 15. Average Vehicle Operating Costs 16. Average Characteristics of Typical Vehicles ANNEXES A. Transport Regulations, 1968 Transport Survey and Proposed Rural Roadt Program B. Transportation Projects Previously financed by the Bank C. Highway Improvements D. Price Escalation Factors for Project Elements E. Implementation Schedule F. Estimated Schedule of Disbursements CHART 15119 Organization of the Ministry of Public Works and Highwray Administration MAP 11734 Highway Network and Transportation System  APPRAISAL. OF A SECOND HIGHWAY PROJECT TUNISIA SUMMARY AND CONCLUSIONS i. The Government of Tunisia has asked the Bank to help finance the improvement of about 225 km of primary and secondary highways in the northern and central regions of the country, and consulting services. ii. The highway improvements consist of bypasses of the towns of Sousse, El-Djem and Sfax on the primary route GP1 (total 44.5 km), and the improvement of about 180 km of two-lane roads on the primary routes GP5 (Mornaghia-Medjez- el-Bab), GP6 (Beja-Jendouba), GP8 (Tunis-Bizerte) and MC 27/28 (Hammamet- Korba) including the construction of bypasses of the towns of Hammamet, Nabeul and Beni Khiar. The constilting services comprise assistance to update the 1968 Transport Survey and to prepare a rural roads program. iii. The proposed loan amount would be US$28.0 million or 54% of the total project cost of US$52.3 million and would cover entirely the foreign exchange component. iv. The Direction des Ponts et Chaussees in the Ministry of Public Works will be responsible for the execution of the construction works and preparation of the rural roads program while the Ministry of Transport and Communications will be responsible for the updating of the 1968 Trans- port Survey. Construction contracts on the basis of unit prices will be awarded after international competitive bidding in accordance with the Bank's Guidelines for Procurement. v. The project was appraised in March/April 1975. The beneficiaries of the project are primarily farmers and manufacturers, consumers and road transport passengers. vi. The project is economically sound and of high priority. On the basis of savings in highway user costs, the improvement works are expected to yield an overall economic return in excess of 33%. Sensitivity analyses testing the overall economic return gave returns of approximately 28% and 27% assuming a 25% cost overrun and 25% reduction of benefits, respectively. vii. Based on expected economic lives of the roads or road sections to be improved, the project is suitable for a Bank loan of US$28.0 million for a term of 24 vears, including a four-year grace period.   APPRAISAL OF A SECOND HIGHWAY PROJECT TUNISIA I. INTRODUCTION 1.01 The Government of Tunisia has asked the Bank to help finance the improvement of about 225 km of highways in the northern and central regions. Feasibility studies and detailed engineering for the improvements were fi- nanced under the First Highway Project carried out by the joint ventures of foreign and local consultants Bureau Central d'Etudes pour les Equipements d'Outre-Mer (BCEOM, France)/Societe Tuni